SBI Q3 PAT up 24% on strong loan growth, stable asset quality

State Bank of India (SBI), the country’s largest lender, announced a 24% year-on-year increase in net profit for Q3FY26, reaching ₹21,028 crore. This growth was driven by robust loan expansion and consistent asset quality.

The bank’s net interest income (NII) rose 9% year-on-year to ₹45,190 crore. Chairman CS Setty confirmed a quarterly improvement in net interest margin to 2.99%, up by 2 basis points, with expectations to exceed 3% next quarter.

SBI received a special dividend of ₹2,200 crore from subsidiary SBI Mutual Fund and aims to complete the mutual fund unit’s IPO process before the end of 2026.

Core business

Gross advances surged 15% year-on-year to ₹46.83 lakh crore during the quarter. The bank upgraded its FY26 credit growth forecast to 14-15% from 12-13% earlier, supported by robust demand in retail, agriculture, and MSME segments. The corporate loan pipeline stands at ₹7.9 lakh crore.

Total deposits increased 9% year-on-year to ₹57.01 lakh crore, maintaining a stable 39% share for low-cost deposits. Chairman Setty noted limited scope for deposit rate reductions amid intense banking sector competition.

Stable asset quality

Fresh slippages declined to ₹4,458 crore compared to ₹4,754 crore in the previous quarter. Recoveries improved to ₹2,371 crore in Q3, with full-year FY26 recovery expectations at ₹8,000 crore.

Credit costs decreased by 4 basis points quarterly to 0.39%, while loan loss provisions dropped to ₹3,216 crore from ₹4,132 crore. Gross NPA ratio fell 50 basis points year-on-year to 1.57%, with net NPA ratio declining 14 basis points to 0.39%.

Published on February 7, 2026